Key Points
- Bitcoin’s price has seen a significant decrease following its fourth halving.
- Analysts suggest the decline was expected due to various market factors.
The price of Bitcoin (BTC) has experienced a notable drop in the days following its fourth halving.
The cryptocurrency’s value has declined by 11% since the halving event on April 20, with Bitcoin trading around $64,000 at that time.
Post-Halving Decline
A brief rally followed the halving, pushing Bitcoin’s price above $67,000 on April 22. However, the price has been gradually decreasing since, dropping below $57,000 on May 1. Currently, Bitcoin is valued at $57,362, marking a 7% decrease over the past 24 hours and a 17% drop over the past month.
The significant decrease in Bitcoin’s value post-halving may have surprised those who anticipated a price surge, as has been the case in previous halving cycles.
Historically, Bitcoin halvings have been followed by price rallies, often occurring about a year or more later. For instance, Bitcoin’s value increased by approximately 3,000% in the 17 months following the 2016 halving, reaching $20,000 in December 2017.
Unique Factors Impacting Bitcoin’s Value
This halving cycle, however, has been distinct in several ways. One key difference is the extraordinary bull run Bitcoin enjoyed prior to the fourth halving, reaching a new all-time high just before the event. Such a price trajectory is unprecedented in Bitcoin’s history.
Mati Greenspan, founder of Quantum Economics, noted that the recent drop in Bitcoin’s price was somewhat predictable given the current economic climate and stock market downturn. Some cryptocurrency analysts had even predicted a post-halving drop, with Bitcoin potentially falling to $42,000.
Markus Thielen, CEO and head analyst at 10x Research, suggested that Bitcoin might fall to $52,000 post-halving. He attributed the recent Bitcoin rally primarily to an influx of funds into Bitcoin exchange-traded funds, which has significantly slowed in the past month.
Other analysts, including investment researcher Lyn Alden, believe there are multiple factors, beyond just the halving and U.S. Bitcoin ETFs, that could push Bitcoin to new highs in 2024.
